Tractor Settlement

 

Once a load is completed within Axele, there are two automations that occur for that load: 1) an invoice is generated and 2) tractor settlement expenses are calculated, which are based on the tractor's payment terms.

We will discuss how to set up a tractor's payment terms, what occurs against the load after it is completed, and how to generate the tractor settlement within this article.

Step 1: Configure the Tractor's Payment Terms

Please note, that you must be an Admin, Accountant, or Power Dispatcher to modify payment terms.

Each tractor can have the same set of terms, or they can be completely different. The choice is yours. We have many options so you can match your business requirements.

Go to Assets > Tractors > select the Tractor > Payment Terms tab. You will see the page below within the Payment Terms tab of your tractor.

There are three payment term sections that you can modify:

  1. Load Rate
    • Most common
    • Examples are revenue share of a load, per mile pay, or items found against an invoice
  2. Schedule Pay
    • Helpful if a driver is paid a certain amount per time period
    • Examples are a driver’s weekly, or monthly, paycheck
  3. Schedule Deduction
    • Used if a driver is paid a specific deduction per time period
    • Examples are cell phone reimbursement, child support, insurance, etc.

You can add as many line items to these sections as needed and Axele will use them to calculate the settlement for your tractor.

To add a component to any of these sections, click the Add Line Item within that particular section. A popup window will appear, which will allow you to configure and add your line item.

For example, let’s add Revenue Share within the Load Rate section:

  1. Go to the Load Rate section, then and click Add Line Item
  2. Click the Pay Type field and select Revenue Share
  3. Modify the Rate field and any other fields as needed
  4. Save!

The new line item should appear under the Load Rate section as shown above.

Go ahead and customize the Payment Terms for this tractor, and all tractors as needed. Going forward, Axele will automatically calculate the tractor payment of a load whenever a load is completed for that tractor.

Please find descriptions of each payment term section below.

Load Rate

Here are the pay types explained.

Additional stop %

Payment based on percentage share of the additional stop charge on the load

Additional stop rate

Payment based on the additional stops done on the load

Detention %

Payment based on percentage share of the detention charge on the load

Detention rate

Payment based on detention charge per hour

Flat Rate

Fixed payment on each load

Fuel surcharge

Payment based on percentage share of the fuel surcharge on the load

Per duty hour

Per hour pay for any duty time spent

Per empty mile

Payment based on the empty miles driven on the load

Per loaded mile

Per mile pay for any loaded runs performed

Per total mile

Payment based on the total miles driven on the load

Revenue share

Payment based on percentage share of the load linehaul revenue

Schedule Pay

This is used when you need to pay a specific amount on a weekly, biweekly, monthly, or annual basis. To add a line item, click Add Line Item within this section.

Based on your configuration, Axele will automatically create the scheduled pay and include it in the pending tractor settlement page (explained in Step 3).

Schedule Deduction

This is used when you need to deduct a specific amount on a weekly, biweekly, monthly, or annual basis. For example, payment of a lease, insurance, mobile phone, etc.

You can configure these scheduled deductions for your tractor by clicking Add Line Item within this section.

Based on your configuration, Axele will automatically create the scheduled deduction and include it in the pending tractor settlement page.

Here is an example of a $200 weekly insurance scheduled deduction, that occurs each Monday, starting on 05/23/2022.

Step 2: Automatic Calculation of Tractor Payment for a Load

Once the load is completed, Axele automatically calculates the load settlement expense for the tractor based on the configurations in Step 1.

Follow these steps to verify the settlement expense for a given load:

Go to Loads > select a load > click the Financials tab > scroll down below the Invoice section to the Tractor Settlement Expenses section.

Use "Share with Driver" feature as shown above to share the tractor settlement expenses info with the driver

You can always modify the settlement expenses for a load by either editing any existing pay items or clicking on Add Line Item and adding a new expense item for the tractor.

You can also modify the invoice line items for the load. If you want to reflect any changes on the invoice after the tractor settlement expenses have been calculated, click the Recalculate icon as shown below. This will pull in any new data and recalculate the expenses section for you.

If there are no expenses within this section, it may be because the tractor does not have any Payment Terms set up yet. If this is the case, add the Payment Terms for the tractor, then go back into the load and click the Recalculate icon. This will pull in the configurations as discussed in Step 1.

To add tractor deductions and payments for the expense like tolls, insurance, etc., click on Add Line Item and select the appropriate pay item as shown below.

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You can modify the automatically calculated expenses, or add new expenses, using the Add Line Item option under Settlement Expenses. Clicking on the Recalculate icon will erase your modifications and recalculate your expenses based on the configurations in Step 1.

There is also a button that gives you the option to include these expenses within the tractor's settlement section. This is helpful for past loads that have already been paid to the tractor. To keep these expenses from showing up during the creation of a tractor settlement explained in Step 3, turn the Enable Tractor Settlements toggle to OFF.

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Step 3: Create and Finalize the Tractor Settlement

When you are ready to create a tractor settlement, begin by following the steps below:

Click Accounting > Tractor Settlements > make sure you are on the Pending Tractor Payments tab > select the tractor to view all pending payments for that selected tractor.

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Below the tractor's id at the top left of the page, you can see the Settlement Total and Gross Year to Date.

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Add any additional pending fuel reimbursements or deductions for your tractor by clicking Add Line Item under the Pending Fuel Payments/ Reimbursements and Deductions section.

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Select the loads and any pending reimbursements and deductions for the settlement, then click Create New Settlement at the top right of the page.

Select the start and end period of the settlement and click Create to complete the settlement.

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Your settlement will now appear as In Review within the web app and from here, you have the option to preview, download, or email the settlement to your tractor owner.

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Once the payment to the tractor owner is made, then click on Finalize at the top right to close the settlement.

Go to Accounting > Tractor Settlements > select the Settlement Reports tab to browse through the settlements already created.